FYI: Verizon Killed the 2-Year Contract With Its New S-M-L-XL Data Plans

Verizon is done with 2-year contracts. That also means they are done with subsidized (discounted) phones in exchange for you signing up for two years of service. Starting August 13, Verizon’s new S-M-L-XL plans are your option when you decide to become a Verizon customer or upgrade from your current phone. Verizon is now fully invested in device payment plans separated from service costs.

According to Verizon’s press release for their new plans, “All new customers, and existing customers who want to move to the new plan, will buy or upgrade to new smartphones using Verizon’s device payment option, formerly known as Verizon Edge, or by paying the retail price.” In other words, if you sign-up for new Verizon service or upgrade when your current plan is done to one of their new plans, you won’t have the choice of a subsidized phone. If you want a new phone to go with your plan and service, you can either pay full retail for one or sign-up for their new device payment plan.

On that note, Verizon is also killing off Verizon Edge. While details are scarce on what the new plan will be called or if it differs from Edge, my guess is that it’ll just be a generically branded 24-month device payment plan. Edge already changed from an early upgrade plan to a 24-month payment plan months ago, so it may go completely unbranded going forward.

All make sense? Starting August 13, Verizon is going the T-Mobile route by moving away from 2-year contracts.

Update: In case you needed some clarification, we have this from Verizon–

New customers will only have the option to pay retail price, or via the device installment plan.

And you are correct, the Edge name is going away. Customers who choose the new plan device payments will still spread the cost of their phone or tablet evenly over 24 interest free months, and they will be able to upgrade anytime once the device is paid in full. Customers also own the device after it has been paid in full – there’s no requirement to turn it in when they upgrade.

EDIT: We’ve received information that clarifies how the upgrade process will work for current customers. According to information sent to us by sources, current customers can move to the new plan or keep their plan and upgrade, add a line, or move up or down within the plan. Verizon isn’t forcing current customers onto the new plans just yet.